Glenn Beck

It's just frightening.

So what they were doing was they're buying a bunch of cheap yen printed over in Japan.

They would then take that yen, which they sometimes, again, were making money on borrowing money.

Think of Goldman Sachs going over, a big bank going over and saying, I want a billion yen, and we're going to take that billion yen, and we're going to get out of that half a billion dollars, and we're going to take that half a billion dollars, and we're going to invest it in Wall Street.

We're making money from Japan because they're giving us 1% on borrowing that.

They're giving us an additional 1% every year for holding those yen and taking that loan out from them.

And then we go to Wall Street, we make 6% or 8% or 10%.

So we're making 11%.

This is great.

We win.

Unless things change.

If the yen suddenly swings the other way, if it strengthens, the borrowers panic.

And they rush to undo the trade.

Why?

Why?

Because that money's not free.

And when you rush to undo it, you sell the things you bought with dollars.

And you get back into the yen.

That pushes U.S.

markets around.